India's Infosys plans huge expansion in China

Outsourcer to grow its staff in China from 250 to 6,000 during next five years

India's second-largest outsourcer, Infosys Technologies Ltd., plans to increase its staff in China to 6,000 over the next five years, up from 250 today, it announced on Thursday.

"The expansion is in line with our strategy to tap local talent as well as to expand our global delivery model to other locations," said Bani Paintal Dhawan, a spokeswoman for the company.

As of June 30, Bangalore-based Infosys had 39,806 employees altogether, most of whom were located in India.

The company is setting up a center in Hanghzhou, at the Hanghzhou Hi-Tech Development Industry Zone, the company said in a statement.

The company said on Wednesday that it was setting up a new center in Shanghai with seating capacity for 1,000 engineers over the next two years. That facility will be in addition to a facility the company already has at the Shanghai Pudong Software Park that employs about 250 people, according to Dhawan.

The initial investment in the new Shanghai facility will be US$10 million over the next two years, while the initial investment in Hanghzhou will be $15 million, according to the company.

Infosys plans to increase its investment in the two centers to a total of $65 million [m] over five years, after which it will be able to house a total of 6,000 engineers at its three centers in China.

The centers will do work in the areas of software development, IT services and business process outsourcing, and will also have training and research facilities.

A number of Indian outsourcing companies have set up operations in China to tap the local market for IT services and support the operations of some of their multinational clients in the country.